Chapter 6 Homework 7 Required Information Part 1 of 2 25 points Skipped eBook Saved Problem 6-3B Record transactions and prepare a partial income statement using a perpetual inventory system (LO6-2, 6-5) [The following information applies to the questions displayed below.] At the beginning of June, Circuit Country has a balance in inventory of $2,600. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,300, terms 1/15, n/45. June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $320. June 8 Return defective radios to Radio World and receive credit, $200. June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $4,200, that had a cost of $2,800. June 18 Receive payment on account from customers, $3,200. June 20 Purchase radios on account from Sound Unlimited for $3,400, terms 3/10, n/30. June 23 Sell radios to customers for cash, $4,900, that had a cost of $3,200. June 26 Return damaged radios to Sound Unlimited and receive credit of $300. June 28 Pay Sound Unlimited in full. References Problem 6-3B Part 1 Required: 1. Assuming that Circuit Country uses a perpetual inventory system, record the transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field.) View transaction list Journal entry worksheet > 1 234567 8 12 > Record purchase of radios on account from Radio World for $2,300, terms 1/15, n/45. Note: Enter debits before credits. Date June 02 General Journal Debit Credit Record entry Clear entry View general journal Chapter 6 Homework 00 8 Required Information Part 2 of 2 25 points Skipped eBook References Saved Problem 6-3B Record transactions and prepare a partial income statement using a perpetual inventory system (LO6-2, 6-5) [The following information applies to the questions displayed below.] At the beginning of June, Circuit Country has a balance in inventory of $2,600. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,300, terms 1/15, n/45. June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $320. June 8 Return defective radios to Radio World and receive credit, $200. June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $4,200, that had a cost of $2,800. June 18 Receive payment on account from customers, $3,200. June 20 Purchase radios on account from Sound Unlimited for $3,400, terms 3/10, n/30. June 23 Sell radios to customers for cash, $4,900, that had a cost of $3,200. June 26 Return damaged radios to Sound Unlimited and receive credit of $300. June 28 Pay Sound Unlimited in full. Problem 6-3B Part 2 2. Prepare the top section of the multiple-step income statement through gross profit for the month of June. CIRCUIT COUNTRY Multiple-step Income Statement (partial) For the month of June Chapter 6 Homework 9 Part 1 of 4 Required Information Problem 6-4B Report inventory using lower of cost and net realizable value (LO6-6) [The following information applies to the questions displayed below.] A home improvement store, like Lowe's, carries the following items: 25 points Skipped Saws eBook References Inventory Items Hammers Quantity 120 Unit Cost $ 6.30 Unit NRV $ 6.80 40 9.30 Screwdrivers 120 1.30 8.30 1.90 Drills 30 24.30 20.60 1-gallon paint cans 150 4.80 4.30 Paintbrushes 170 5.30 5.80 Problem 6-4B Part 1 Required: 1. Compute the total cost of inventory. Total cost Saved Chapter 6 Homework 10 Required Information Part 2 of 4 Problem 6-4B Report inventory using lower of cost and net realizable value (LO6-6) [The following information applies to the questions displayed below.] A home improvement store, like Lowe's, carries the following items: 25 points Skipped Saws eBook Inventory Items Quantity Unit Cost Hammers 120 $ 6.30 Unit NRV $ 6.80 40 9.30 8.30 Screwdrivers 120 1.30 1.90 Drills 30 24.30 20.60 1-gallon paint cans Paintbrushes 150 4.80 4.30 170 5.30 5.80 References Problem 6-4B Part 2 Saved 2. Determine whether each inventory item would be reported at cost or net realizable value, and then place that unit amount in the "Lower of Cost and NRV per unit" column. Multiply the quantity of each inventory item by the appropriate cost or NRV unit amount and place the total in the "Total" column. (Round "Cost per Unit" to 2 decimal places.) Lower of Cost Inventory Items Cost or NRV and NRV per Total unit Hammers Saws Screwdrivers Drills 1-gallon paint cans Paint brushes Total $ 0 Chapter 6 Homework i 11 Part 3 of 4 ! Required Information Problem 6-4B Report inventory using lower of cost and net realizable value (LO6-6) [The following information applies to the questions displayed below.] A home improvement store, like Lowe's, carries the following items: 25 points Skipped Saws eBook Inventory Items Hammers Quantity 120 Unit Cost $ 6.30 Unit NRV $ 6.80 40 9.30 8.30 Screwdrivers 120 1.30 1.90 Drills 30 24.30 20.60 1-gallon paint cans Paintbrushes 150 4.80 170 5.30 4.30 5.80 References Problem 6-4B Part 3 Saved 3. Prepare necessary entry to write down inventory from cost to net realizable value. (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field.) View transaction list Journal entry worksheet 1 Record the adjustment for inventory. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal Chapter 6 Homework 12 Required Information Part 4 of 4 Problem 6-4B Report inventory using lower of cost and net realizable value (LO6-6) [The following information applies to the questions displayed below.] A home improvement store, like Lowe's, carries the following items: 25 points Skipped Saws eBook Inventory Items Hammers Quantity 120 Unit Cost $ 6.30 Unit NRV $ 6.80 40 9.30 8.30 Screwdrivers 120 1.30 1.90 Drills 30 24.30 20.60 1-gallon paint cans Paintbrushes 150 170 4.80 5.30 4.30 5.80 References Problem 6-4B Part 4 Saved 4. The write-down of inventory from cost to market net realizable value reduces total assets and increases total expenses, leading to lower net income and lower retained earnings. True or False True False